Sustainability report - 2013 by TASA

Sustainability Report

2013

Innovative, Eco-Efficient and Socially Responsible

This is our Communication on Progress in implementing the principles of the United Nations Global Compact and supporting broader UN Goals. COMMUNICATION ON PROGRESS

We welcome feedback on its contents.

Sustainability Report 2013 First sustainability report of the Peruvian fishing sector published in accordance with the GRI G4 guidelines

Reporte de Sostenibilidad

2013

iente y Socialmente

Innovadora, Ecoefic

REPORTE DE D SOSTENIBILIDA

2012

Sustainability Report 2012 121 indicators reported, 100% of the total “A” Self-declared “A” Third Party Checked “A” GRI Checked

Responsable

ECOEFICIENTE INNOVADORA, RESPONSABLE Y SOCIALMENTE

Sustainability Report 2011 121 indicators reported, 100% of the total “A” Self-declared “A” Third Party Checked “A” GRI Checked

Sustainability Report 2010 114 indicators reported “A” Self-declared “A” Third Party Checked

Sustainability Report 2009 107 indicators reported “B” Self-declared “B” Third Party Checked

Sustainability Report 2008 Prepared under the GRI methodology 84 indicators reported “C” Self-declared

Company Report 2007

Contents Message from the Chairman of the Board

2013 TASA in synthesis

About this report

Company profile

Local Industry

Materiality Analysis

Responsible Management Model

Economic Performance

Environmental Management

Relationship with the Community

Workplace

Human Rights

Survey of Sustainability Report 2013

GRI Index

Message from the Chairman of the Board Six years have passed since the first time that we presented a sustainability report and we feel a sense of satisfaction towards the achievements that we have reached working together with our stakeholders. These achievements encourage us to renew our commitment and continue improving always with the innovative, eco-efficient and socially responsible focus that TASA prints on everything it does. One of our priorities is the care of the environment within our operations. For this reason, TASA continues to lead environmental compliance in the treatment of industrial waters (Maximum Permissible Limits), in advance of the

Sustainability Report 2013

rules that make this standard obligatory beginning in 2015. This goes hand in hand with our efforts to continue improving our processes, reducing the use of water, energy and fuel, and by strengthening a solid and transparent organizational culture that prioritizes the working environment and the safety of our employees. In the Human Management field, we carried out different initiatives oriented towards promoting the growth of our employees with various internal and external training programs, fostering a culture of knowledge management and strengthening leadership with a special focus on training in safety, another one

of the pillars of our work. Our orientation towards social responsibility has been demonstrated during 2013, since more than 80 activities of projection towards the community were carried out on a national level involving TASA employees, who performed training actions in schools and community-based organizations, promoted health and care of the environment, organized gastronomic fairs in communal dining rooms, as well as the cleaning of beaches and markets. In this sense, it is important to highlight that the NutriTASA Project, in its second year of execution and in strategic alliance with the Provincial Municipality of Cusco, provided benefit to 180 families with children in state of malnutrition and risk. Additionally, mothers were persuaded to incorporate the anchovy in the family diet, which is very important in the highlands where the consumption of fish is especially low. The contribution of the project was recognized by the Business Creativity Prize of the Universidad Peruana de Ciencias Aplicadas (UPC) in the category Commitment to Society. In 2013 we continued to promote the consumption of fish through our distribution centers and authorized center in the highlands of the country (Cusco, Ayacucho, Andahuaylas, Abancay and Juliaca) where we were present with our TASA-Kontiki products at accessible prices for the local population. Additionally, our well known campaign “Llegó la CamioneTASA: con lo mejor

del mar para tu casa” (The CamioneTASA has arrived: with the best from the sea for your home) was expanded and improved thanks to the NutriTASA Fair, an activity that allowed us to continue contributing to the promotion of the consumption of fish and healthy eating, reaching more than 90 thousand people in various parts of the country. These and other social responsibility programs have led the company to be recognized for a second consecutive year with the distinction of Socially Responsible Company from the Asociación Perú 2021. Finally, I would not like to finish without extending a deserved recognition to the team of people who form TASA. All of these achievements would not be possible without the commitment of our more than 3 thousand employees who, day to day, help TASA to continue to be an innovative, eco-efficient and socially responsible company of world class.

Sincerely,

Mario Brescia Moreyra

2013 TASA in figures Invoicing of more than

US$ 400 million

More than

US$ 1 millio of investment in projects

13 and

fishing plants

activities with the comm frozen plant

fish supply centers in the highlands of the country

40,284 hours of safety training

Sustainability Report 2013

1 S M

More than

3,230

US$ 4 million

workers

on and

munity.

of investment in environmental management

More than

US$ 480 million in payment tosuppliers, of which

Prizes and distinctions obtained:

1st place in Business Creativity SRC Distinction MERCO Reputation Ranking

95%

are local suppliers

Leader in national exports, between

23% and 28%

of participation in fishmeal and fish oil, respectively 7

About this report G4-28 G4-29 G4-30

Since the year 2007 we have published our sustainability report on an annual basis. This is the sixth annual edition that covers the complete period of 2013. The most recent report was the one that covered the year 2012. The information included in this document covers all of our operations, activities and branches. No relevant operation or economic, environmental

Sustainability Report 2013

or social matter has been excluded. For the development of this report, we used the Guide for the preparation of Sustainability reports of the Global Reporting Initiative, in its version G4. This report complies with the guidelines of the Exhaustive method, since it develops all the indicators of the aspects present in GRI G4 identified as material by our company.

Company profile Who we are G4-3 G4-7

In TASA we extract, transform and commercialize hydro-biological resources for direct and indirect human consumption. We also provide shipyard services for the construction, maintenance and repair of marine vessels. All of our business units have an orientation towards quality and added value in harmony with the community and the environment. a. Fishmeal and Fish Oil: We have 13 plants with a total processing capacity of 1,753 MT per hour, of which 1,695 MT/h. (97%) correspond to Steam Dried (SD) plants, and 58 MT/h (3%)

Sustainability Report 2013

correspond to Fair Average Quality (FAQ) plants. b. Frozen Products: We have 1 plant with an installed capacity of 521 MT/day and a cold storage capacity of 14,960 MT. c. Shipyard: We have 1 shipyard that provides construction, repair and maintenance services of marine equipment on a national and international level. d. Fishing: We have 50 operating vessels. Currently, 16 of them are parked.

Mission To provide the world with marine elements and ingredients of high quality and added value, in harmony with the community and the environment.

Vision To be a world class company, leader and innovator in the sustainable exploitation of marine resources for nutritional purposes.

Values Integrity We act ethically, seriously and reliably.

Comprehensive development We are committed to the safety, learning and the improvement of our quality of life.

Excellence We are innovators and continuously improve our processes, quality and technology.

Sustainability We are responsible in the use of the natural resources and respectful of the environment and the communities where we operate.

Management Policy Our commitments respond to: Satisfying the needs of our clients. Providing safe products and high quality services. Acting as a responsible company with its natural resources and stakeholders. Preventing environmental contamination, the occurrence of injuries, diseases and unlawful activities.

Promoting the participation, consultation and overall development of our personnel. Complying with the applicable regulations, standards and commitments. Continuously improving and innovating products, processes and technology.

Our presence on a national level

T/H T/H

T/H

T/H T/H T/H T/H

Lima

T/H

Fishmeal and Fish Oil Plant Steam Dried (SD) Fair Average Quality (FAQ) Frozen plant Shipyard Distribution Center Authorized distributors

T/H T/H T/H

T/H

Kontiki Store, Minka - Callao *T/H: Metric ton per hour.

Sustainability Report 2013

Ilo: 58 T/H

Corporate Governance G4-38

G4-35 G4-42 G4-39 G4-40

The two organs of governance of our company are: the General Shareholders Meeting and the Board of Directors. The General Shareholders Meeting is composed of Inversiones Breca with a participation of 99.96% and other minority shareholders, who meet once a year, at least.

maintaining ethical values and principles in all of the levels of the organization, thus it establishes and controls the compliance of the norms and corporate policies. Additionally, it is responsible for appointing the members of the Senior Management and establishing the remunerative and incentive policies.

Board of Directors

Organizational structure

The Grupo Breca, with the support and advice of the Corporate Center, leads the strategic orientation of the Board of Directors of TASA, as well as the undertaking of its new projects and investments.

The Senior Management headed by the General Manager consists of 16 Management areas (2 Business Management areas and 14 support Management areas, and is led by the General Management. The performance indicators of each Management are reported to the Board of Directors on a quarterly basis; and, on a monthly basis to the Corporate Center.

The Board of Directors is composed of seven directors, who establish the guidelines for the management and operation of TASA. Four of these directors are members, at the same time, of an Executive Committee which is responsible for analyzing the performance of the company, risk prevention and management of human talent. As governance organ, our Board of Directors complies with the purpose of

The performance evaluation of Senior Management is carried out based on three aspects: measurement of indicators related to the position, role as team leader, as well as behaviors and competencies.

Board of Directors Audit Committee General Manager Carlos Pinillos

Internal Audit Manager José Carlos Peñaloza

Central Fishing Manager Derek Zimmermann

Central Operations Manager Edgar Aroni

Central Administration and Finance Manager Gonzalo de Romaña Human Resources Manager Pablo Gamero Quality Manager Javier Igarashi Research and Development Manager José Rainuzzo Commercial Manager Gustavo Ferreyros Institutional Relations Manager Fernando Deustua

Central Administration and Finance Manager Gonzalo de Romaña

Logistics Manager Javier Moarri

IT Manager Roberto da Cruz

Sustainability Report 2013

Legal Manager Hortencia Rozas

Central Fishing Manager Dereck Zimmermann

Comptroller Ernesto Cabrera

Fishing Manager Juan José Bellido

Maintenance Manager Ignacio Agramunt

Shipyard Manager Carlos Barrionuevo

G4-41

G4-37

G4-44 G4-51

With the purpose of avoiding conflicts of interest inside our governance organs, the following instances have been established: • The Corporate Center that enforces the compliance of the standards and objectives of the Board of Directors, Senior Management, and of the organization in general. •The Compliance Committee of the Code of Conduct and Ethics, that enforces the diffusion and compliance of the internal code that establishes the principles and norms that regulate the behavior of our employees. The main norms are related to discrimination, anticorruption measures, harassment or aggression by sex, age, color, religion, physical condition, or political affiliation. • The Internal Audit Management, which carries out the follow up of the compliance of the processes, standards and procedures of TASA. Additionally, we have corporate policies originating from the BRECA Group, which include matters of corporate finance, internal audit, legal and strategic planning, among others, which regulate our actions.

Management committees There are three Committees which meet with the Executive Committee: • Audit, Risk and Finance Committee. • Strategy and Performance Committee. • Human Talent Management Committee. Likewise, the following Management committees have been established that

meet on a monthly basis: • Central Management Operations Committee. • Central Management Fishing Committee. • Human Consumption Committee. • Commercial Committee. • Quality Committee. • Innovation Committee. • Research and Development Committee. • Committee of Compliance of the Code of Conduct and Ethics. • Audit Committee. • Information Technology Committees. • Legal Committee. • Social Responsibility and Communications Committee. • Logistics Committee. • Administration and Control Committee. • Planning and Management Committee. • Human Talent Committee. • Physical Safety Committee. • Occupational Safety and Health Committees for each branch. Through these Committees the employees have the opportunity to propose to their area Manager the inclusion of any relevant subject regarding social, economic and environmental aspects. Furthermore, 100% of the employees are represented in the Occupational Safety and Health Committees of each unit, which have monthly meetings in compliance with Law 29783 and its regulation. The Audit, Finance and Risk Committee meet every three months. This instance evaluates the main risks of the company, on a reputational, regulatory, financial and operational level, for their correct management and control. The results obtained are presented to the Board of Directors.

G4-45 G4-46

Ethics G4-57 G4-58 G4-SO3 G4-SO4

TASA has the policy of reviewing, updating and transmitting in all of its branches the declaration of mission and values developed internally, as well as the Code of Conduct and Ethics and the relevant principles for its economic, social and environmental performance. For this purpose, it has formed two Committees: • The Audit, Finance and Risk Committee, composed of: four Directors, the General Manager, the Corporate General Manager, the Corporate Advisor of Senior Management, the Corporate Audit Manager and the Internal Audit Manager. •The Compliance Committee of the Code of Conduct and Ethics, composed of: The Advisor of the Senior Management, the General Manager, the Central Administration and Finance Manager, the Human Resources Manager, the Legal Manager and the Audit Manager.

G4-57 G4-58

In our company we have an “Ethics Line”, a communication channel that allows all of our stakeholders to report facts that represent a breach of the Code of Conduct and Ethics or that contradict the values of TASA. The appropriate

Sustainability Report 2013

way to report these facts is to the email: lineaetica@tasa.com.pe. Furthermore, we have an access link through the website www.tasa.com.pe, which is automatically directed to the above-mentioned email address. For the following year, on a corporate level, it has been proposed to transfer the receipt of complaints through an Integrity Channel to a third company, which will be responsible for obtaining initial information and reporting the complaints received for their subsequent treatment.

The Line of Ethics has been communicated to all the staff through various activities during all of 2013: publication in RevisTASA, mass emails, induction talks to new personnel, and informative talks of the Code of Conduct and Ethics. During 2013, the display of the Code of Conduct and Ethics was mainly focused on new personnel, as part of the induction process. There were eight induction sessions that included 150 people from different units and positions of TASA.

In 2013 we have received three complaints due to irregularities related to 3 of the 16 localities in which we carry out our activities. All of these were the subject of analysis and were promptly reported to the General Management and to the Compliance Committee of Conduct and Ethics, which assigned responsibilities and established procedures to ensure the confidentiality and reserve of said complaints. At the closing date of this report, we have not identified any assumption of practices in the area related to corruption or discrimination.

G4-SO5

Products Unit

Indirect Human Consumption

Direct Human Consumption

Shipyard

Type of Process Steam Dried Direct heat drying (FAQ)

Fishmeal and Fish Oil

Imported product (commercialization in the national market)

Horse Mackerel and Mackerel (Whole, HG, HGT)

Freezing in layers

Anchovies (Whole, HG, HGT) and Mahi Mahi (fillet and portions), Horse Mackerel and Mackerel

Freezing of Brine

Anchovies (Whole, HG, HGT)

Canning process (Cooked and raw)

Filets of Whole Mackerel and Bonito (RO1000, RO550, ¼ club); Whole Anchovies (RO1000, RO550, ¼ Club, Big Tinapa); Whole Horse Mackerel (1lb tall) Grated Horse Mackerel and Anchovies (1lb tall, ½ lb tuna), Omegaburger

Marine Repair and Modification Marine Construction

Note: HG: without head or guts, HGT: without head, guts or tail.

Sustainability Report 2013

Product

Marine vessel or equipment

Markets G4-8

The destination markets of our products are those indicated in the following diagram

G4-9

Holland Belgium

Spain Canada

Germany

Italy

Cuba

Denmark

United States

France

United Kingdom

Norway Slovenia Greece

Haiti

Brazil Cape Verde Colombia Chile Guatemala

Sustainability Report 2013

Honduras

Venezuela

Uruguay

Ivory Coast Ghana

South Africa

Turkey

Poland

Bulgaria Rumania

China

Korea Japan Egypt Taiwan Hong Kong

Australia

Philippines

Thailand

Indonesia Nigeria

Congo

Sri Lanka

Gabon

Vietnam

American Samoa

Fishmeal

Fish oil

Frozen

Canned

Germany Australia Belgium Canada Korea Chile China Denmark Spain United States Philippines France Greece Holland Hong Kong Indonesia Italy Japan United Kingdom Taiwan Turkey Vietnam

Australia Belgium Canada Korea Chile China Denmark Spain United States France Guatemala Holland Honduras Norway Japan Taiwan Venezuela

Brazil Bulgaria Cape Verde Ivory Coast Cuba Egypt Slovenia Spain United States Nigeria Ghana Italy Poland Republic of Congo Rumania South Africa Thailand

Brazil Canada Colombia Spain United States Haiti United Kingdom Republic of Congo American Samoa Sri Lanka Uruguay

Sale of products by market type Year

Sales

National

Fishmeal (MT)

Fish Oil (MT)

Frozen (MT)

Canned (MT)

Anchovy (MT)

Omegaburger (MT)

2012

324,365

75,001

29,546

222,576

112

2013

197,808

34,852

25,003

69,289

The year 2013 had 26% fewer sales compared to 2012, since the period began with a reduced inventory of fishmeal and fish oil, as shown in the following table: Initial stock of fish oil (MT)

Year

Initial stock of fishmeal (MT)

2012

130,915

35,745

2013

22,460

8,926

-73%

-75%

Variation

Furthermore, despite having imported 9,350 MT of frozen horse mackerel, the sale of frozen fish in 2013 was 22% less than in 2012. The total sales of 2013 of our commercialized products rose to US$ 446,056 million, with the following detail: Concept Fishmeal (MT)

Quantity

Value Thousand US$

197,808

325,550

Fish Oil (MT)

34,852

83,192

Frozen Fish (MT)

25,003

34,482

Canned Fish (BOXES)

69,289

2,012

1,270

819

Fresh Fish (MT) TOTAL

446,056

In this manner, once again we positioned ourselves as the leading company of the national fishing industry, representing 23% and 28% of the national exports of fishmeal and fish oil, respectively.

Sustainability Report 2013

Fishmeal During 2013, TASA exported its fishmeal production to 21 countries, positioning itself in alternative markets to China, improving the diversification of the

portfolio (TASA â&#x20AC;&#x201C; 52% and the fishing sector â&#x20AC;&#x201C; 61%). 78% of its fishmeal production was exported to China, Germany and Chile.

Export of fishmeal by destination - 2013

2% Taiwan

1% United Kingdom 1% Canada

2% Vietnam

52% China

3% Others

2% Australia

5% Turkey

12% Chile

14% Germany

6% Japan

Fish oil In the case of fish oil, the average annual price of the exported tons of this product had a growth of 59% compared to 2012, reaching an average of US$ 2,450 per ton for 2013. This can be explained by the insufficient supply due to the lower initial stock and a low yield of oil of 4.06%, compared with the average of 5.45% of the last

three years; additionally, the fact that the sales of oil for human consumption increased from 16% in 2012 to 43% in 2013. The sales of oil for the food industry for salmon (aquaculture market) occupied 57% of the oil sales, with Chile and the Nordic countries as the main export destinations.

Export of fish oil by destination - 2013

1% South Korea

1% Vietnam

2% United States

1% Colombia

3% Japan

5% China

2% Others

23% Denmark

11% Australia

27% Belgium

24% Chile

Human Consumption The sale of products for human consumption totaled US$ 37.0 million, of which 93% were frozen products (US$ 34.5 million).

19% of the frozen products were commercialized in international markets such as Nigeria, Brazil, Bulgaria and Egypt.

Export of Frozen fish by destination - 2013

2% Ghana 2% Philippines 3% Others

4% Spain 7% Egypt

7% Bulgaria

55% Nigeria

21% Brazil

The remaining 81% of the sale of frozen products was commercialized in the distribution centers located in the southern

highlands of Peru (Abancay, Andahuaylas, Ayacucho, Cusco and Puno).

Sale of Frozen fish on a national level - 2013

5% Andahuaylas 3% Abancay

13% Cusco 3% Ayacucho

5% Juliaca 30% of the production of canned fish was commercialized in the international market to countries such as Brazil, Libya and Spain. 70% of the sales were carried out to the national market, totaling 48,710 boxes.

Sustainability Report 2013

71% Callao The canned fish brand Kontiki was present in the main supermarket chains of the country, while fish continued to be supplied to important third party brands. In December of 2013 the â&#x20AC;&#x153;Kontiki Storeâ&#x20AC;? located in the Multimercado Minka of Callao was inaugurated.

Export of Canned fish by destination - 2013

9% Canada

9% Micronesia

11% Spain

27% Libya

45% Brazil

Shipyard The hull and maintenance services totaled sales of US$ 5â&#x20AC;&#x2122;135,913, increasing 6.6% compared with the previous year.

93 vessels were attended (17 own and 76 private).

Value chain G4-12

The value chain of TASA is composed of three stages that summarize its productive cycle. These stages are: 1. Fishing 2. Operations 3. Commercialization Specialized suppliers participated in each one of these stages, such as, for example, third party fleets, in the fishing stage; or our stevedore contractors, in the Operation phase.

Fishing In this stage the productive cycle of the industrial fishing of TASA begins. This implies the operative and logistical preparation for the fishing operations; as well as the fishing operations themselves until the discharge of the resource in the plants.

Operations This phase of the value chain is carried out in the 13 fishing plants of TASA. Here the transformation of fish into fishmeal and fish oil (IHC) is carried out. It also involves the transformation processes in the Human Consumption division. Furthermore, this stage also manages the disposition, storage and transport of our products in an appropriate manner, for the purpose of having them arrive in good condition, and in accordance with the standards required by our clients.

Commercialization This phase covers all the processes related with the sale and relationship with our clients. We ensure that our clients receive our product, according to their expectations and what was agreed with them, and respecting the standards and norms demanded by the international markets.

Sustainability Report 2013

One of the main characteristics of our activity is its seasonality, the specialization of tasks and the extensive use of labor. In our industry we have ship owners, companies dedicated to the extraction of the marine resource, and commercialization to fishing companies who are responsible for all the productive cycle, such as TASA. The ship owners assume a preponderant role as suppliers of the resource. Due to their importance in our mapping of stakeholders, they are identified in a differentiated manner from other suppliers of our company. Additionally, we have two types of suppliers: those of general or specialized services; and those of goods, who provide us with supplies, parts and assets. We have the policy of prioritizing purchases through local suppliers for logistical goods and services. In this manner, we ensure a prompt and efficient supply. This is why we continue signing purchase contracts with our most representative suppliers. In this manner, we simplify the process by having strategic loyal suppliers.

As part of continuous improvement G4-SO9 and mutually beneficial relationships with our suppliers, we continue carrying G4-LA14 out the approval of those suppliers considered critical due to their impact on the points of our Management System. During this year 2013, we have approved 100% of our new suppliers considered critical (87 suppliers). This enables us to have a total of 95% of approved critical suppliers (389 approved of 409). The approval, which is carried out by an external company, reviews and validates the following aspects: • Financial situation and legal obligations. • Operating capacity. • Quality management. • Safety, health and the environment. • Commercial management. • BASC (Business Alliance for Secure Commerce) System. • Social responsibility, where we have also included questions related to compliance of the ten principles of the Global Pact of the United Nations, labor practices, forced labor, child labor, and discrimination, among others.

Success story

Project Evaluation of suppliers of goods In TASA we also seek the continuous improvement of our suppliers. This is why we have implemented a project directed towards our main suppliers of equipment (motors, air conditioning, etc.) and materials (parts, supplies), which includes training, follow up and monitoring activities and feedback meetings regarding their behavior in the delivery of the materials. In this manner, we evaluate them and assign a score based on two criteria: the recurrence of purchases (based on the number of purchase orders) and the value of purchases. As a sample we took 90 suppliers which served as a basis for carrying out the feedback. During the month of November we carried out the first feedback

meeting with the suppliers, where we showed them their performance. Three weeks later we obtained improvements in their compliance, reaching average values of 88% of compliance compared with the initial 74%. This demonstrates that propitiating spaces for dialogue, giving feedback, generating trust and getting close to the stakeholders, ensures sustainable relationships and improves the internal management indicators. TASA has converted this project into one of its indicators of the Purchase process, and it is hoped to copy it with all of its suppliers.

Percentage of compliance of delivery of materials

95% 90% 85% 80% 75% AVERAGE

70% Before the feedback

1st week

2nd week

3rd week

General average: 88%

Sustainability Report 2013

Management Systems

Fishmeal and Fish Oil Plants

Another one of the elements that enriches the sustainability strategy of TASA is the implementation and certification of different management systems to ensure the quality and export of their products,

Business Alliance for Secure Commerce

Commerce, Recollection, Storage and transfer

Good Manufacturing Practices

Hazard Analysis and Critical Control Points

Certification of Guarantee for the Muslim Market

BASC

GMP+B3***

GMP+B2*

HACCP

HALAL

Global Standard for the Responsible Supply of Raw Material IFFO-RS

the safety and health of their personnel, and the conservation of the Environment. Our company, in this manner, seeks for management to have a real grip on the overall performance.

Certification of sustainable fishing and agricultural product FoS

Environmental Management System ISO14001

Occupational Health and Safety Management System OHSAS 18001

Paita

2005

2009

2010

2011

2010

2013

2011

Parachique

2008

2010

2011

2010

2013

2011

Malabrigo

2005

2009

2010

2011

2010

2013

2009

Chimbote

2010

2011

2010

2013

Samanco

2005

2009

2010

2011

2010

2013

Supe

2005

2009

2010

2011

2010

2013

2009

Vegueta

2006

2009

2010

2011

2010

2013

Callao

2004

2009

2010

2011

2009

2013

2007

2010

Pisco Norte

2004

2009

2010

2011

2013

2007

2013

Pisco Sur

2005

2009

2010

2011

2013

2010

2009

Atico

2006

2009

2010

2011

2013

2010

Matarani

2005

2009

2010

2011

2013

2011

Ilo

2008

2009

2010

2011

2013

2009

2010

2009

Imp

Commercial Management

Quality Management System

BRC

ISO 9001

Protection Plan and other certifications of the Port Facility**

2013

Frozen Plant

2004

Shipyard

2011

Fishing Management

2011

2009

2013

Atico Port Facility

Legend:

British Retail Consortium

2011

2009

Year

Unit certified in the year

2013

Unit certified in 2013

Imp

In process of implementation

2005â&#x20AC;&#x2122;â&#x20AC;&#x2122;

Awards and distinctions FIRST PLACE IN BUSINESS CREATIVITY PRIZE 2013 Granted to the NutriTASA Project in the Category “COMMITMENT TO SOCIETY”Universidad Peruana de Ciencias Aplicadas (UPC) and Diario El Comercio.

Sustainability Report 2013

DISTINTIVO ESR DISTINCTION ESR2013 2013:- EMPRESA SOCIALLY SOCIALMENTE RESPONSABLE RESPONSIBLE COMPANY Otorgado la Asociación Perú which 2021, Granted bypor Asociación Perú 2021, que evalúa el avance y compromiso de la evaluates the progress and commitment compañía en cuatro dimensiones: calidad of the company in four dimensions: quality de de the la empresa, empresarial, of vida life of company,ética business ethics, vinculación con la with comunidad y cuidado and relationship the community del medio TASA forma parte de and care ofambiente. the environment. TASA forms las que ostentan distinpart62ofempresas the 62 companies thatesta hold this ción en el Perú. distinction in Peru.

MERCO REPUTATION RANKING REPUTACIÓN RANKING MERCO Las 100 companies The empresas con withmejor the best reputación reputationy and the más responsables most responsible del Perúin Peru edición – edition 2013. 2013. En la categoría In the category de las empresas of the companies con mejor with the best reputación, TASA reputation, obtuvo elTASA puesto obtained 56 y en 56th la categoría place and de las in empresas the category más responof the most responsible sables y con mejor companies gobiernowith corporativo, the best corporate el puesto 39. governance, 39th place.

Local Industry For the purposes of this sustainability report, which seeks to reflect the aspects that determine the context of our sector, we explain the economic, regulatory, climatic and environmental, and social matters that influence the behavior of our industry and, therefore, its sustainability.

Sustainability Report 2013

Economic aspects Our geographic location, where the Humboldt and El NiĂąo currents converge, is the source of our great fishing wealth that includes 400 species of crustaceans, 1100 species of mollusks and 1052 species of fish, of which 150 currently support fishing. In terms of commercial importance, the species that mostly stand out in our ecosystem are: anchovy and squid. Other important species are horse mackerel, mackerel, tuna, bonito and mahi-mahi.

Peru is a country of fishing tradition and history, globally recognized for its leadership in the extraction, production and commercialization of fishmeal. Fishing activity, whether on an artisanal or industrial level, is close to the men and women of the Peruvian coast, which has an extension of 3.000 kilometers and an area of 400 square nautical miles.

Since Peru is a country with a great marine biodiversity and richness, fishing constitutes a relevant economic activity for the development of the country. In 2013, the economic growth of the country, which registered an increase of 5%, was mainly led by the fishing and construction sectors, which grew at rates of 10.8% and 8.6% respectively. This was due to a greater quota of anchovy granted by the Production Ministry for the first and second season, obtaining a national landing of 4,235,367 MT. In parallel with the international market, in which China and some Nordic countries are the most important clients for fishmeal and fish oil products, there is a local direct human consumption market. In order to stimulate it, the fishing industry has invested US$ 354 million in refrigerating its fleet, and constructing and equipping frozen plants. This is because one of the great challenges as an industry is to stimulate the Human Consumption (HC) market.

Together with the above, we have diversified the supply of products for HC. In this manner, for example, we are producing canned products based on horse mackerel and mackerel in different sauces and oils, products that are available in the main markets of the country, also focusing on a major effort for the fish (horse mackerel, mackerel and anchovy, as well as other new species such as hake, silverside, squid, mahimahi and bonito) to reach the southern highlands of the country: Cusco, Juliaca, Abancay, Andahuaylas and Ayacucho.

Regulatory aspects Recently, the regulations in the Peruvian fishing sector have contributed to controlling the extraction of the marine resource for its preservation, taking as reference the scientific studies of the Instituto del Mar del PerĂş regarding the evolution of the marine biomass in recent years. In 2008, by Legislative Decree No. 1084, the Law regarding the Maximum Permissible Capture Limits per Vessel was enacted, establishing a fishing

Sustainability Report 2013

ordering mechanism applicable to the extraction of the anchovy and white anchovy resources destined for indirect human consumption, for the purpose of improving the conditions for its modernization and efficiency; promoting its sustained development as a source of food, employment and income; and, ensuring responsible exploitation of the hydro biological resources. Furthermore, at the end of 2013 the Production Ministry by Supreme Decree No. 33 stipulated that the strip included between 0 and 10 marine miles is a zone reserved for the artisanal fleet; from 5 until 10 marine miles fishing zone for the lower scale vessels (vessels between 10 and 32.6 cubic meters of hold capacity) who can also fish beyond the ten miles, always directing their resources to direct human consumption; and after 10 marine miles for the industrial fleet. Finally, it is important to highlight that in terms of environmental control there has also been regulation since the Maximum Permissible Limits (MPL) have come into effect in effluents and emissions which helps reduce the environmental impact of the sector.

Climatic and environmental aspects The Peruvian ecosystem is influenced by various currents, warm and cold waters, predominantly the latter, which favors the existence of the anchovy and other marine resources. For example, one of the global events that is beneficial for the sector is the La NiĂąa Phenomenon, characterized by cold temperatures on the Peruvian coast (-2 and -1 degree of temperature anomaly), unlike warm events such as the El NiĂąo Phenomenon, which elevates the temperature of the sea (+1 and +4 degree of temperature anomaly) and has a negative repercussion on the habitat of the anchovy. However, these warm conditions permit the

entry of other resources, such as horse mackerel, mackerel, bonito and tuna. These climatic changes and the variability of the ecosystem affect the sector, especially now that the investigators sustain that the warm events will be more recurrent due to the effects of global warming. With regard to environmental management, an aspect that marks the agenda of the sector is the mitigation and the control of one of its main impacts: effluents. In this manner, in places like Chimbote, leading companies have been investing in technologies such as the installation of the outfall.

Social aspects One of the most important pending aspects in the agenda of the fishing sector is the promotion of the consumption of fish to combat the indices of child malnutrition in the country. Thus, the Production Ministry along with the Sociedad Nacional de Pesquería and its associates have implemented educational and awareness programs directed at the poorest sectors of the country, improving their health and nutrition through the introduction of the anchovy and other marine resources in the family diet. Likewise, for the purpose of contributing to the sustainable development of the

main port communities of the coast, the association has nine Associations of Fishmeal and Fish Oil Producers: APRO-PAITA, APROSECHURA, APROCHICAMA, APROCHIMBOTE, APROCHANCAY, APROSUPE, APROCALLAO, APROPISCO and APROTAMBO. The APRO are associations formed by three or more fishing companies that operate in the same locality. Their structure allows them to focus on the responsible intervention of the companies through social and environmental programs.

Global and local tendencies Economic

G4-16

Social Global:

Global: • Substitution of fishmeal • Consumption of China • Intensification of aquaculture

Local: • Impulse of fishing for HC • Need for the cold chain • Formalization of artisanal fishing

Source: Various

Sustainability Report 2013

Environmental

Local:

• Global warming that affects marine behavior • Environmental movements

• Promotion of fish consumption • Importance of fish for nutritional goals • Greater awareness regarding the sustainability of the resource

Local: • Better practices to mitigate environmental impacts • Regulation in favor of environmental care

Materiality Analysis G4-18

The purpose of this sustainability report has been to reflect the relevant aspects for our management and that influence our performance. For this, we have followed a five stage process which involved the leaders of the organization and, naturally, our stakeholders: 1. Identification of the value chain â&#x20AC;˘ In three preliminary meetings with executives from the areas of Strategic Planning, Social Responsibility, and then with the TASA managers, the stages of the value chain were identified. â&#x20AC;˘ In these meetings the negative and positive impacts of each stage were defined in a preliminary manner. â&#x20AC;˘ In parallel, with the accompaniment of a Technical Committee, the most

Sustainability Report 2013

important risks that could have an impact on TASA were identified and assessed. This exercise permitted the inclusion of sustainability risks in our risk matrix of the entire company. This stage responds to the principle of Context of sustainability and Completeness, in accordance with the guidelines of the Global Reporting Initiative. 2. Prioritization of impacts (matrix) With the previous exercise and with the specialists from the Technical Committee area of our company, we established a valuation with regard to the impact for TASA as well as for the stakeholders.

This stage responds to the principle of Materiality, in accordance with the guidelines of the Global Reporting Initiative. 3. Validation and discussion with leaders of the organization • We organized a workshop with the senior managers of TASA to prioritize the main risks that affect TASA and our stakeholders. • Based on a valuation, we identified six main aspects that cut across our entire value chain: --Delinquency surrounding the fishing communities or nearby ports. --Accidents on the high seas. --Reduction of the quota. --Events related to climatic change. --Increase in the substitution of fishmeal and fish oil in balanced food diets. --Variability of the regulations in the sector.

4. Association with GRI Aspects and indicators • In desk review, the six main aspects prioritized and validated were expressed in challenges of sustainability that we associated with 14 GRI-G4 Aspects, as well as other ad hoc aspects. Both stages also respond to the principle of Materiality, in accordance with the guidelines of the Global Reporting Initiative. 5. Collection of expectations of the stakeholders • Through two dialogue panels carried out with representatives of our stakeholders both in Lima as well as Chimbote, we compared the key aspects in sustainability identified with our leaders. This last stage responds to the principle of Stakeholder Engagement, in accordance with the guidelines of the Global Reporting Initiative.

Material aspects and coverage G4-19

Based on this process we have been able to establish 5 main challenges in terms of sustainability. At the same time they constitute the material aspects to report.

G4-20 G4-21

1 Contribution to a favorable environment for socioeconomic development and a good social climate in the areas surrounding our operations.

5 Institutional Strengthening. Coverage: Internal and External

Coverage: External

Main sustainability challenges

Establishment and promotion of a safe and healthy environment for our employees. Coverage: Internal

Maintenance of an effective strategy of sustainability of the resource. Coverage: Internal

Diversification of other lines of business for nutritional purposes. Coverage: Internal

Sustainability Report 2013

The following aspects and GRI indicators to report arise from this list of material aspects:

Indicators: G4-EC1: Direct economic value generated and distributed Aspect Economic Performance

G4-EC2: Financial implications and other risks and opportunities for the organizationâ&#x20AC;&#x2122;s activities due to climate change

Coverage: Internal

G4-EC3: Coverage of the organizationâ&#x20AC;&#x2122;s defined benefit plan obligations

Category ECONOMY

G4-EC4: Financial assistance received from government

Indicators: Aspect Indirect economic consequences

G4-19

G4-EC7: Development and impact of infrastructure investments and services supported

Cobertura: External

G4-EC8: Significant indirect economic impacts, including the extent of impacts

Indicators:

G4-20

Aspect Local Communities

G4-21

G4-SO1: Percentage of operations with implemented local community engagement, impact assessments, and development programs

Coverage: External

G4-SO2: Operations with significant actual and potential negative impacts on local communities Indicators:

Category SOCIAL PERFORMANCE Subcategory Society

Aspect Anticorruption

G4-SO3: Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

Coverage: Internal

G4-SO4: Communication and training on anti-corruption policies and procedures G4-SO5: Confirmed incidents of corruption and actions taken

Aspect Grievance mechanisms for impacts on society

Aspects Supplier assessment for impacts on society

Indicators: G4-SO11: Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms

Coverage: External

Indicators: G4-SO9: Percentage of new suppliers that were screened using criteria for impacts on society

Coverage: Internal

G4-SO10: Significant actual and potential negative impacts on society in the supply chain, and actions taken

G4-19

Indicators:

G4-20

G4-LA5: percentage of total workforce presented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs

G4-21 Aspect Occupational heath and safety

Coverage: Internal

G4-LA7: workers with high incidence or high risk of diseases related to their profession

Category SOCIAL PERFORMANCE Subcategory Work practices and decent work

G4-LA6: type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region and by gender

G4-LA8: health and safety topics covered in formal agreements with trade unions Indicators: Aspect Supplier assesment for labor practices

G4-LA14: percentage of new suppliers that were screened using labor practices criteria

Coverage: External

G4-LA15: significant actual and potential negative impacts for labor practices in the supply chain and actions taken

Category: Society Aspect: Compliance

Aspect: Biodiversity

Aspect: Compliance

Category ENVIRONMENT

Aspect: Grievance mechanisms in environmental aspects

Aspect: Effluents and waste

Indicators: G4-SO8: monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

Indicators: G4-EN11 G4-EN13 G4-EN12 G4-EN14

Indicators: G4-EN29

Coverage: External

Coverage: Internal

Indicators: G4-EN15 G4-EN19 G4-EN16 G4-EN20 G4-EN17 G4-EN21 G4-EN18

Indicators: G4-EN34

Coverage: Internal and External

Indicators: Aspect: Emissions

Sustainability Report 2013

G4-EN22 G4-EN25 G4-EN23 G4-EN26 G4-EN24

Coverage: Internal and External

Coverage: Internal

Responsible Management Model The management model of TASA has the purpose of the sustainability of the business under a logic of continuous improvement and strategic relationships with our stakeholders. Sustainability management in TASA is transversal to all the activities, processes and actions. It is supported on seven strategic pillars: leadership, strategic planning, orientation towards the client, measurement, analysis and management of knowledge, orientation towards the personnel, focus on the operation and results.

Sustainability Report 2013

Strategic pillars of the Sustainability Management of TASA

5 Orientation towards the personnel

2 Strategic Planning

7 Results

1 Leadership

3 Orientation towards the client

Focus on the operation

of ent m e ag 4 Measurement, analysis and man

1. Leadership This model is based on our Mission, Vision and is anchored to our values Integrity, Excellence, Integral development and Sustainability. TASA not only exercises a leadership position in the national and international fishing sector, but it also represents the industry that is at the forefront in social responsibility, commitment to its environment and transparency. 2. Strategic Planning TASA develops its strategy based on its goals considering the expectations of its stakeholders, since its long term reputation depends on them. In TASA we align these expectations with their objectives, plans and projects. 3. Orientation towards the client We are oriented towards the client always considering their main concerns

Sustainability Report 2013

ge ed l ow kn

through bidirectional channels. This information serves to implement improvements and innovate in our processes and products. 4. Measurement, analysis and management of knowledge We ensure our organizational learning through tools and systems that permit us to safely access the knowledge of our company. 5. Orientation towards the personnel The human management of TASA is based on three pillars, work climate, culture management and talent management. 6. Focus on the operation We promote a culture of continuous improvement through the promotion of competitions of improvement projects between our employees.

Risks and impacts stakeholders. Once the risks and impacts are analyzed, we implement plans of control, management or mitigation for the purpose of maintaining an assertive relationship with our environment.

As well as having our management model, in TASA we periodically analyze the strategic risks and those that are present in each one of the stages of our value chain. From our perspective, these risks can generate impacts in our

Strategic Risks

Strategic risks

Strategic Map 2014-1016 Sector leader / Sales increase / Expenses and costs optimization / Strengthen internal and external reputation

TASA'S RISKS Impacts

Clients Value chain risks

Sustainability risks + Continuity risks Operations

Fishery

Shareholders Suppliers

Commercialization

Fish meal and Fish oil, Human consumption

Communities

Legal regulations

Operations

Working climate

Social Responsibility

Communications

Security

Safety and Health

Environment

Food safety

Quality

Management risks

Employees

Stakeholders G4-24 G4-25

In TASA we have mapped our stakeholders that have been identified and prioritized based on the following criteria: level of influence, perception and flexibility in their relationship with the management of the company. Any change in the definition of the stakeholders has a direct impact on the

strategic objectives. Any modification is subject to the annual revision and approval of Senior Management. We carry out participative workshops twice a year to update the mapping of the stakeholders along with the Management Committee and the employees of each one of our Plants.

TASA Stakeholders 2013 G4-24

Stakeholders

Sub groups

1. Shareholders

There are no sub groups

2. Financial creditors

There are no sub groups

3. Ship-owners

Preferential and temporary Skippers Specialists (Machine engineers, pilots)

4. Employees

Employees Workers Crew Human consumption selectors

5. Community

Paita Plant

Paita

Parachique Plant

Sechura

Malabrigo Plant

Rázuri

Chimbote Plant

27 de Octubre

Samanco Plant

Samanco

Shipyard

Huanchaquito

Supe Plant

Supe

Vegueta Plant

Caleta de Vegueta

Callao Norte Plant

Márquez

Pisco Plant

Pisco playa/ Pisco pueblo / San Andrés

Atico Plant

Atico

Matarani Plant

Matarani / Mollendo

Ilo Plant

Ilo

Shipyard

Construction Repair

Indirect Human Consumption A clients (by sales volume) B clients Institutional

6. Clients Local frozen and canned

Wholesalers Supermarkets

Foreign frozen and canned Fresh Local governments

Other regulators

Ministry of the Environment 7. State

Ministry of Labor and Promotion of Employment Ministry of Production Ministry of Social Inclusion Suppliers of services

General and Specialized Inputs

8. Suppliers

Suppliers of goods

Spare Parts Assets International

Sustainability Report 2013

Commitments to stakeholders We assume strategic commitments with each one of our stakeholders, we collect and analyze their expectations and establish channels of communication that ensure an assertive relationship.

1 Contribution to a favorable environment for socioeconomic development and a good social climate in the areas surrounding our operations.

5 Institutional Strengthening. Coverage: Internal and External

Coverage: External

Main sustainability challenges

Establishment and promotion of a safe and healthy environment for our employees. Coverage: Internal

Maintenance of an effective strategy of sustainability of the resource. Coverage: Internal

Diversification of other lines of business for nutritional purposes. Coverage: Internal

Dialogue and relationships G4-26

Our communication approach our stakeholders is based on the tionship and bi-directionality. We direct communication, dialogue

Annual report

Bulletin ComuniTASA (Every four months)

with relahave and

consultation channels, such as satisfaction surveys, feedback and coordination meetings and personalized attention.

External Satisfaction dissemination RevisTASA surveys and communica- (Bimonthly) tion materials *

TASA Te Comunica

Receipt of suggestions

Internal disseLegal mination and Intranet Social Networks bulletin communication materials **

Shareholders

Financial creditors

Ship-owners

Clients

Employees

x x

Communities

State

Suppliers

* IIncludes diptychs, brochures, videos (induction, strategic planning, and summary of internal and external activities, among others), radio spots, ads, among others. ** Includes summons, communications, advice, brochures, campaigns, flyers, diptychs, videos (induction, strategic planning, summary of internal and external activities, among others), radio spots, ads, among others.

The frequency of these communication mechanisms with our stakeholders is variable, since we have tools that are bimonthly such as RevisTASA or annual such as the satisfaction surveys. Furthermore, we have a space where we

intend to have everyone participate simultaneously, such as the dialogue panel that takes place once a year. It should be stated that this mechanism affects the preparation of our sustainability reports, since we collect their expectations of information.

Expectations of the stakeholders For the third consecutive year, we have carried out dialogue panels with multiple stakeholders for the purpose of collecting the main expectations and suggestions that help us to improve the execution of our sustainability focus. On this occasion, we carried out two spaces of this type, one in Lima and ano-

City

ther one in Chimbote, which gathered representatives from our stakeholders, employees, community, government, suppliers, among others. These panels are perhaps the only experience in our company that simultaneously groups representatives from many stakeholders in a single space.

Stakeholders

Dialogue panel Lima

• Employees • Suppliers • Communities • Unions and civil society • Media • State

Dialogue panel Chimbote

• Employees • Suppliers • Unions and civil society • Media • State • Sector experts

Sustainability Report 2013

Collected aspects In Chimbote and in Lima, aspects related to environmental, community and regulatory affairs were addressed, with the difference that in the panel

Environmental Aspects

Chimbote

Lima

• Term for the commissioning of the outfall • Environmental recovery of Chimbote • Good environmental practices • Presumed contamination in el Dorado • Obtaining of certifications • Change of energy matrix in plant of Chimbote

• Management of effluents and Maximum Permissible Limits • Obtaining of certificates • Relevance of the environmental practices and standards

that took place in Lima – which brought together a more institutional public – more information was collected from the sector.

Community / Social Aspects

Regulatory (and/or sector) Aspects

• Challenges in communication • Good SR practices • Projects with SMEs • Local employment

• Transporter impact in Samanco (one single access road)

• Relationship of trust with actors from the civil society NGO • Challenges in communication • “Culture” of the sector and its actors

• Gradual change in the face and practices of the sector in recent years • Sustainability of fishing • Compliance of the norms and regulations • Business concentration of the industry • Fragmentation of the relationship with Produce and inside the industry itself

retocar uniforme

Risks Risk Management G4-14

Risk management covers our entire company and is based on the guidelines of the Board of Directors and General Management. All management areas are responsible for identifying and controlling risks in coordination with all the responsible units. • Operational risks are managed through the Planning and Management Area that reports to the Central Administration and Finance Management, which identifies and updates the risks of all the processes of the organization in the Operating Risk Matrix in which the schedules of action plans and follow up of indicators are established. This Operating Matrix Risk is used as a key input for the annual process of Strategic Planning. • This matrix includes the analysis of market, credit and liquidity risks and those occasionally produced by the effects of climatological changes. Thanks to the materiality process that we have undergone this year, in the case of this sustainability report, we have included five sustainability aspects that have enriched this matrix. • Financial controls are administered by the Controller Management, the area responsible for the revision and approval of the company’s procedures to ensure that it has adequate controls. • The Internal Audit Management, which reports to the Audit Committee, is responsible for determining whether TASA’s administrative, accounting and financial processes, as designed and approved by Management, are reliable, adequate, and functional and/or complied with. The results of the evaluations carried out by the Internal Audit Area are reported to the Audit Committee, considering the following aspects:

Sustainability Report 2013

• Materiality and risk level. • Regulatory non-compliance. • Significant matters in TASA’s processes, and the improvements identified. For its part, the Head of Physical Safety has the Risk Management Procedure, to prevent unlawful activities and incidents of corruption in the operations and determine the threat context and scenarios in each one of its facilities. In this manner, relevant or significant risks are identified, analyzed, monitored and communicated to all the personnel involved in the process and/or in the installation. This evaluation is translated into the physical safety risk matrix, which establishes a treatment and mitigation program of the identified risks, permitting us to achieve the BASC recertification in all of the operating units. During the year 2013 the Crisis Management Plan and the Business Continuity Plan were updated and provided to all of those involved. These documents are a guide for facing situations that could affect the operations and/or the reputation of the company, establishing action plans and assigning people responsible for their implementation.

Regulatory compliance During the year 2013 we have had notifications of four Sanctioning Administrative Procedures which, to date, do not yet have a fine imposed by resolution. Likewise, we have not had infractions of the environmental legislation nor have we received environmental complaints. Finally, during 2013 no significant effluent spills have occurred.

Economic Performance G4-EC1

We contribute economically to our employees, suppliers, the State and our communities. In the year 2013, we obtained a profit of US$ 52.2 million, which translated into a reduction of 17.4% compared to the profit of the year 2012. Our net sales totaled US$ 450.5 million, which represented a reduction of 25.7% compared to the previous year. Of this total, the sales of fishmeal and fish oil represented 90.6%.

Sustainability Report 2013

G4-EC1

At December 31, 2013, the company had total assets of US$ 1,001.3 million (US$ 889.8 million in 2012), which increased by 12.5% compared to the year 2012. Fixed assets (net of depreciation) represent a total of US$ 482.8 million (US$ 514.1 million in 2012). Our activity generates benefits not only to our company, but it also rewards our stakeholders.

G4-EC1

Direct economic value created (in US$)

2012

2013

606’399,000

450’507,000

2012

2013

Payment to national suppliers (MM $)

377’545,000

461’088,000

Payment to foreign suppliers (MM $)

12’675,000

19’710,000

Payment of salary and social benefits to employees (MM $)

42’094,000

42’284,000

Finance costs (MM $)

10’087,000

10’369,000

Payment of taxes (MM $)

34’325,000

22’523,000

Environmental investments

35’013,360

4’176,299

1’022,287

1’027,016

G4-EC3 Sales (MM $)

Economic value distributed

Investments in the community ** EBITDA

*Includes donations, community outreach activities, volunteer work, sustainable projects, patronage and sponsorship and support for APROs (Associations of fishmeal and fish oil producers).

Environmental Management An ally of the management of our environmental impacts in TASA is technology. Hence, during 2013, we have invested more than 4 million dollars in aspects related to the environment.

Environmental investment G4-EC7

The most important environmental aspects are related to one of the main impacts in the fishing industry which is the generation of effluents, even if they have occurred during the discharge of fish or during their production, which could affect the marine ecosystem and artisanal fishermen.

Sustainability Report 2013

G4-EC8

This impact is already being managed by the company which has implemented and invested in solids recovery mechanisms.

Plant

Investment

Malabrigo

• Purchase of discharge equipment in flat-bottomed boat, implementation of retaining wall in petroleum tank and equipment for treatment of effluents.

Chimbote

• Purchase of equipment for the PAMA zone, equipment of automatic cleaning in process and equipment to mitigate noise in generators.

Samanco

• Purchase of discharge equipment in flat-bottomed boat and installation of retaining wall of fuel tanks.

Supe

• Implementation of flat-bottomed boat equipment for the discharge of raw material.

Végueta

Callao

Pisco Norte

This enables it to comply with the Maximum Permissible Limits which will come into effect starting in 2015.

• Purchase of equipment for the reuse of water in process.

• Purchase of equipment for the treatment of all the pumping water.

• Conversion of the combustion system in plant.

Pisco Sur

• Conversion of the combustion system in plant and purchase of equipment to improve the discharge in Flat-bottomed boat.

Atico

• Purchase of equipment to improve the discharge in Flat-bottomed boat.

Matarani

• Purchase of equipment to improve the discharge in Flat-bottomed boat.

Ilo

• Change of technology from FAQ to Steam Dried, purchase of discharge equipment in flat-bottomed boat.

Sustainability Report 2013

Effluents G4-EN22

Our main effluent is the pumping water that results from the mixture of seawater and fish, hence containing organic waste and fat. This effluent is treated through filtration, flotation and dehydration systems; and subsequently it is discharged by an outfall to deeper areas in order to preserve the marine ecosystem. Said effluents totaled 2â&#x20AC;&#x2122;008,951 m3 during 2013 which comply

with the Maximum Permissible Limits. The indicators and the objectives of fats and solids in the pumping water are analyzed on a monthly basis, achieving reductions under the Maximum Permissible Limits that will be in effect as from the year 2015. Domestic water is treated in treatment plants to be reused in the irrigation of green areas.

G4-EN24 2012

2013

MPL VALID WITH EFFECT FROM 2015

Oil and fat %

0.005

0.035

Total suspended solids %

0.036

0.059

0.070

DB05 %

0.36

0.41

Not regulated

Concept

Sustainable Fishing and Biodiversity The red list of the IUCN (International Union of Conservation of Nature) considers as endangered (with a high risk of danger of extinction) in the categories “In critical danger, in danger and vulnerable” a total of 17 species of birds, five species of turtles, four species of whales and the sea otter; and other species are categorized in a state of almost threatened and with insufficient data to categorize. The Peruvian state according to SD 004 2014-MINAGRI, considers in “Critical danger, danger and vulnerable state” five species of turtles, 19 species of birds, two species of sea lions and the sea otter and additionally four species of birds as almost threatened. In TASA we carry out actions to be able to care for the main superior predators of the Peruvian sea, through trainings for their correct identification and liberation in collaboration with the NGO Prodelphinus, we provide them with a poster and the Identification

Sustainability Report 2013

guide of the main species of superior predators so that our fishermen correctly register the sightings, informing the NGO Prodelphinus and TASA of their presence. Our operations are carried out in a responsible manner close to some protected marine areas, such as the bays of Paracas, Samanco, Végueta, Atico and Ilo. In order to mitigate the impact on these bays we take care to comply with the environmental norms to ensure that we do not damage the ecosystem. It should be stated that no significant impacts on the biodiversity have been recorded in these zones. Although we do not carry out in depth studies regarding the state of the biodiversity and the consequences of our operation on it (since these investigations are carried out by the regulatory organisms of the sector and because the impacts are produced on the scale of the entire industry and not only of one operator), we support

actions to mitigate the possible effects in this area, such as: • Continuous activities to improve the concepts of sustainability, conservation and responsible management of the sea resources on the part of the crewmembers. These activities are carried out in cooperation with the NGO Pro Delphinus. Currently, 85% of the fishermen have been trained, in other words, more than 840 people between fishermen and fishing captains in aspects related to responsible fishing and identification of marine mammals. • Marine investigation activities, continuously identifying and registering the biodiversity, monitoring the functioning of the ecosystem and contributing to the study and analysis of the various problems that are still observed in fishing. In this sense, the fishing logs have improved since they have expanded the information to the

description of the sighting of birds, mammals and reptiles. It is worth mentioning the satisfaction obtained in 2013, by the responsible actions of seven crewmembers who freed marine predators that had become trapped in the nets. • Installation of acoustic dispersion systems, denominated “pingers” in the fishing nets of 11 vessels, which result in dolphins keeping their distance to avoid capture. • Finally, we obtained the “Friend of the Sea” certification in all our units. This is the only international system that, with the same seal of approval and through an audit carried out by a foreign accredited Certification Entity, can potentially certify products originating from the fishing or cultivated. These sustainability activities evidence our commitment during more than two decades of success to the fishing of the anchovy, horse mackerel and mackerel.

Emissions One of our main concerns is to reduce the emissions in our operations. Therefore we have been using natural gas since 2009 in the plants of Callao Norte and Paita. We have been able to reduce the consumption ratio of gallons of petroleum per ton of meal produced which signifies savings of 119,002 gallons, equivalent to 95,058.77 tCO2e. The generated emissions are shown in the following table: 2012

Fuel

Consumption

Residual R 500

1’862,448

gal

Emission of tons of equivalent Carbon Dioxide

19,514

2013

Total reduction of emissions

tCO2e

Natural Gas

7’193,031

sm³

16,343

Consumption

2’082,877

-3,171

Emission of tons of equivalent Carbon Dioxide

gal

21,824

-3,546 8’044,358

sm³

18,278

The results of the monitoring of the fishmeal plants carried out in 2012 are the following:

Plant

NOx (in kg)

SOx (in kg)

Particulate material (PM 10, PM 2.5) (in kg)

Malabrigo

354,680

108,322

19,182

Chimbote

336,418

123,116

222,950

Samanco

50,473

28,979

13,687

Supe

65,856

22,061

39,100

Végueta

138,522

41,359

28,892

Callao

27,878

3,429

Pisco Norte

145,044

43,811

92,062

Pisco Sur

125,691

48,071

80,045

Atico

3,550

2,545

1,724

Matarani

23,073

11,973

3,865

Ilo

189

5,779

2,671

Sustainability Report 2013

tCO2e

Total reduction of emissions

tCO2e

As a result of other emissions we obtained the list indicated in the table, this increase is because it was a year of intermittent fishing in which the stops (turning on and off of equipment) increase. This causes the consumption of additional fuel and, therefore, a greater amount of emissions.

2012

2013

Eq CFC-11 Diesel/ton of meal (grams)

0.24

0.19

Eq CFC-11 Petroleum R500/ton of meal (grams)

0.11

0.08

Eq CFC-11 Natural gas/ton of meal (grams)

0.03

0.02

Waste G4-EN23

The solid waste generated in our facilities are managed from their origin, carrying out the segregation in colored recipients; and then through service providing companies that have the respective authorizations from the national authority for their transport, disposal and commercialization.

2012 Hazardous solid waste (MT) 570

2013 Non-hazardous solid waste (MT) 2,302

Hazardous solid waste (MT) 396

Non-hazardous solid waste (MT) 1,710

Relationship with the Community G4-SO1

The social and economic impacts of TASA towards the localities in which we operate and their respective communities are mostly positive, since we maintain a direct, horizontal and transparent relationship with the actors involved. Our management is based on strategic alliances with the municipalities, the educational entities, environmental civil associations, among others, which strengthen the value chain that we maintain from the beginning of our operations.

Sustainability Report 2013

We are concerned with maintaining good relationships with the stakeholders of the communities where we operate. Our community strategy and of contribution to society is centered on supporting economic development in the areas where our fishing plants are located, promoting respect for the environment, improving the nutrition indices through our anchovy distribution centers and also investing in sustainable projects to strengthen the capacities of potential entrepreneurs.

Line 1: Focus of intervention, description and scope

Focus of intervention

Description

Scope

QUALITY NUTRITION • Nutritional promotion based on anchovy • “Fish Consumption” Campaign

EDUCATION AND CULTURE • Development of youth leadership in environmental management • Promotion of culture through the cultural center Centenario Chimbote

Promote the consumption of healthy, accessible marine products, that contribute to the nutrition of the country

Children between 0 and 5 years. Pregnant and breastfeeding mothers

Strengthen educational and cultural competencies through subjects that promote social responsibility and the value of the local, regional and national identity

Children, adolescents and young people from the communities

Strengthen business capacities and associations of entrepreneurs through collective work mechanisms, insertion in the market and the financial system

Unions of artisanal fishermen, stevedores, adult men and women of the community

Spread and create awareness of good practices through transparent communication and the relationship with key actors

Employees Authorities Communities

BUSINESS DEVELOPMENT

• Learn and Undertake (strengthening of business capacities) • Associations of sustainable entrepreneurs • Alternative business activities to artisanal fishing

SOCIAL RESPONSIBILITY CULTURE • Plans of social outreach/Participative volunteer work • Strengthening of awareness for the care of the environment

During the year 2013 we continued managing and complying with the social commitments assumed with the communities. With a social investment of more than US$ 1 million, which includes our contribution through the APRO, it was possible to benefit 190 thousand persons located in the localities where we operate.

Area Volunteer work and community outreach activities + Reading plan

2012

2013

$ 36,000.00

$ 28,826.00

Sponsorships

$ 67,200.00

$ 227,071.00

Donations

$ 79,550.00

$ 32,466.00

Sustainable Projects

$ 157,300.00

$ 118,000.00

APROS

$ 682,237.00

$ 620,653.00

$ 1â&#x20AC;&#x2122;022,287.00

$ 1â&#x20AC;&#x2122;027,016.00

Total

Activities with the community We carried out more than 80 volunteering and outreach activities with the community, organized and executed by approximately 1300 of our employees on a national level, executing training actions in schools and grass-roots organizations, promoting health and care of the environment, organizing gastronomical fairs together with communal dining rooms, promoting the cleaning of beaches and markets. All of these actions were carried out in an articulated manner with the municipalities, educational institutions, civil associations of the localities and artisanal fishermen.

Sustainability Report 2013

In alliance with Rimac Seguros, the project “With better nutrition, everything is going to be fine” was executed benefitting more than 50 public educational centers with more than 8000 1st, 2nd and 3rd grade children, teachers and parents. This project addressed care in health and nutrition through the reading and narration of stories that were delivered as donations to each educational institution.

The campaign “The CamioneTASA has arrived: with the best of the sea for your home” was expanded and improved by the Fair NUTRITASA, which promoted the consumption of fish and healthy eating through health and nutrition services. These fairs were carried out in Huaycán, Supe, Andahuaylas, Abancay, Cusco and Juliaca, offering horse mackerel, mackerel, anchovy and squid at low prices.

In Chimbote we carried out the II Youth Diploma in Environmental Leadership, in alliance with the Centenario Cultural center and the NGO Natura with the participation of four local educational institutions, with a total of 100 high school students and 38 teacher guides trained. Each school led an environmental project benefitting more than seven thousand people from their respective communities. These projects had the Schools for Sustainable Development certification which is supported by the Ministry of the Environment and the Ministry of Education.

On a sectorial level, we continue collaborating with the implementation of the Management Model that regulates the APRO. Our General Manager chairs the Social Responsibility Committee of the Sociedad Nacional de Pesquería (National Fishing Society), which seeks to support activities in support of the common wellbeing of the communities surrounding the operations of the APRO.

6.1 Development of the local economy Our community strategy places special emphasis on the development of productive capacities in the communities. These will permit the basis to be established, not only of our sustainable projects, but also of the economic-productive activation and revitalization of the localities that we are a part of. G4-SO2 G4-SO10 G4-LA15 G4-EC8

One of the challenges that we have assumed for the generation of an inclusive, responsible and sustainable value chain, is the promotion of the development of local suppliers, who have difficulties in complying with labor or safety norms that allow risks to be controlled during the provision of their services. In view of this, TASA seeks to eliminate the indices of informality in the zones through the homologation of their suppliers who have to present evidence of organizational, financial, labor, safety, environmental management standards, among others. Furthermore, the area of Logistics has designed a program for suppliers to orient them and accompany them in the improvement of their service through training and follow up activities, monitoring in SAP and feedback meetings. During 2013, we have continued generating business opportunities for the artisanal fishermen and their families through our project “I Learn and Undertake” in Atico. At the closing date of this report, the participating group had formed the Atico Commercial Consortium and generated up to 40% of profit in the commercialization stage.

6.2 Local reputation of TASA We carried out our third reputation study in the localities of Atico, Samanco and Végueta (emblematic locations of our industry), for the purpose of getting to know

Sustainability Report 2013

the perception of the resident stakeholders of the zone with regard to the performance of the company on four fronts: relationships with the community, environmental practices, ethics and transparency, perception of the company as a workplace. The study contemplated the application of surveys to the population and interviews of opinion leaders from the three localities. As a result a reputational level of 62% at a level of public opinion was obtained, and of 72% at a level of local opinion leaders, in other words “Good reputation”, according to the valuation scale presented. It should be noted that the average indicator of the study for 2013, 67%, increased by 3% compared to the study carried out in the year 2011, with the localities of Végueta and Atico obtaining the best results with regard to the perception of their performance in environmental conduct. Finally, two interesting aspects with regard to how we are perceived and who has a better assessment of our behavior are: --The variable where we obtained the highest score is environmental conduct, probably due to the improvements implemented in the operation, such as incorporation and compliance of quality standards (ISO 14001) and implementation of infrastructure and equipment for a more responsible operation with the Environment. --The public in which we generated the best perception is formed by the local leaders of opinion. We believe that this is due to the fact that they manage information through the company’s direct and formal channels, which shortens the gap and demystifies many aspects.

Success story

Project

In the second year of the NutriTASA project the strategic alliance was maintained with the Provincial Municipality of Cusco, through two Nutritional Surveillance Centers (CNV in Spanish). Under the same cooperation focus, we established the intervention of four modules of Nutritional Orientation and Early Stimulation (MONETs in Spanish) of the District Municipality of San Jerónimo, benefitting more than 180 families of children in state of malnutrition and at risk. NutriTASA is mainly oriented towards providing technical assistance to the CVN and MONETs with the purpose of improving their processes in nutritional recovery, achieving the permanent attention of 150 children and the application of healthy practices by mothers in their homes, incorporating the anchovy into the family diet. This effort resulted in the reduction of 36% in moderate anemia and the recovery of the nutritional health of 14.4% of children evaluated at the beginning and end of the project.

DIRESA CUSCO Control of weight and height Control of illnesses

HEALTH CENTER

HEALTH CENTER • Identifies malnourished children • Directs children to the CVN

• Evaluates attended children • Identifies recovered children • Signs the Discharge Form Children discharged

Identification of malnourished children NUTRITIONAL DISCHARGE

Nutritional Surveillance Center

Family plan

• Follow up of nutritional state • Training in healthy family • Evaluation of Family plan

MONITORING OF NUTRITIONAL RECOVERY

NUTRITIONAL LOW AND REFERENCE

CVN Nutritional Surveillance Center

Nutritional Surveillance Center

ATTENTION TO DIRECTED CHILDREN

• Reception of directed children • We make commitments to the family • Provides balanced food

CONTROL OF WEIGHT AND HEIGHT OF THE CHILDREN

Nutritional Surveillance Center Registry of control data home visits/ Follow up Home visits

Nutritional Surveillance Center Promotes that mothers take their children to the Health Service for the controls, according to CRED card Home visits

Sustainability Report 2013

Reception of children in Nutritional Surveillance Center

The proposal considers that it is necessary to strengthen the municipal leadership regarding this initiative, develop a consolidation process that permits the organization, standardization and

normalizations of all the activities of the CVN; as well as promoting knowledge and healthy practices in the mothers and their families.

Nutritional management without NutriTASA

Child attended for malnutrition but without monitoring.

Families not involved in the nutritional monitoring of the child.

Health personnel that identifies malnutrition but does not carry out promotion activities.

Health Center focused on the nutritional diagnosis.

Nutritional management with NutriTASA

Child diagnosed with malnutrition that receives constant monitoring.

Family trained in healthy practices and involved in the nutritional monitoring.

Complementary technical personnel that carries out promotion activities.

Nutritional Surveillance Center focused on promotion and the management processes of NutriTASA.

Project Winner Business Creativity 2013

Category Commitment to Society Universidad Peruana de Ciencias Aplicadas (UPC) y Diario El Comercio

Success story

Improvement of the business capacity and institutional strengthening of the artisanal fishermen of Atico Since August of 2012, TASA through the project I LEARN AND UNDERTAKE has been working with the Union of Artisanal Fishermen on the strengthening of their business capacities, for the purpose of improving their economic and working conditions. At the end of the first year, it was possible to formalize and constitute four family SMEs. During 2013, we continued with the commercialization stage of hydro biological products in the port of Atico, with the formation of the ATICO FISHING CONSORTIUM as an important milestone, which has the objective of attending to more important orders and commercializing with the main national and international fishing companies. The Atico Fishing Consortium has been developing a successful business model, in order to improve the income of the artisanal fishermen. In this scheme, the ship owners organize themselves to attend to the orders directly and develop productive processes of primary treatment, logistics and commercialization.

Sustainability Report 2013

The Consortium has already advanced on its path, which has deserved the attention and interest of exporting clients, since it has characteristics that make it unique and help it to consolidate a competitive position: --Legal constitution. --Good manufacturing and environmental management practices. --Timely delivery of orders. --Owners of their own vessels, which facilitates the direct negotiation of prices. Two types of markets can be identified for the Atico Fishing Consortium. The first is the corporate market (exporting companies) and wholesale markets which it mostly sells the following products: squid, mahi-mahi, seafood and ova in large quantities. The second one is the retailers and restaurant market where added value products are commercialized, such as: mixed shellfish.

COMERCIALIZADORA DE PRODUCTOS HIDROBIOLOGICOS

ARMADORES Y COMERCIALIZADORES DE PRODUCTOS HIDROBIOLÃ&#x201C;GICOS S.A.C

ACHIEVEMENTS ECONOMIC ACHIEVEMENT: --Increase of profit of up to 49% in the commercialization stage of ova. AGENT

QUANT (KG)

PRICE

TOTAL

EXPENSES

PROFIT

PROFIT %

Sale to middle man on the dock

7924.0

S/.10.50

S/.83,202.00

S/.52,000.00

S/.31,202.00

60%

Direct sale to exporter

7924.0

S/.13.70

S/.108,558.80

S/.52,000.00

S/.56,558.80

109%

Earnings per agent

120%

109%

100% 80%

60%

60% 40% 20% 0% MIDDLE MAN

EXPORTER MIDDLE MAN EXPORTER

SOCIAL ACHIEVEMENT: --Direct employment of more than 180 residents of Atico with better working conditions and fair pay. --Revitalization of the local economy, which benefits everyone involved in the value chain. --Favorable and positive climate in the Port of Atico with regard to the entrepreneurship of the Consortium. ENVIRONMENTAL ACHIEVEMENTS: --Good practices in environmental care such as respect for the biodiversity, correct management of solid waste, use of biodegradable products and compliance with the closed seasons.

Labor Environment In TASA we make sure that the environment of our workers has the best safety conditions and cares for their integrity.

Sustainability Report 2013

G4-9 G4-10

Our Employees In 2013 in TASA we have 3230 employees between all our labor categories. Employees by labor category and gender, 2013 2012

2013

Male

Female

Male

Female

% by category of employee

Officers

1.27%

Employees

543

212

546

208

23.34%

Workers

1,273

304

1218

199

43.87%

Crew

1,068

1018

31.52%

Category

Total

3,440

G4-11

Of the total of our employees, 1,417 of them are Workers, of whom, 137 (9.67%) are affiliated to a union committee. The union committees are distributed in the following manner: 2 union committees, 2 company unions and 1 National union. The union committees are distributed in the Shipyard (Chimbote) and Atico, the company unions in Ilo, Malabrigo and the

3,230

100.00%

National Union covers Vegueta, Callao and Pisco. Furthermore, there is a branch union (SUPNEP â&#x20AC;&#x201C; Sindicato Ă&#x161;nico de Pescadores de Nuevas Embarcaciones Pesqueras), which most of the crew members of vessels belong to on a national level (99.51%) and almost all of our crew members.

In total we have 1150 employees covered by collective agreements, who represent 35.60% of the total workers.

2012

2013

Category % Unionized

Unionized

Not Unionized

% Unionized

Officers

0.00%

Employees

0.00%

754

0.00%

Workers

10.15%

137

1,280

9.67%

1,013

99.51%

1,150

2,080

35.60%

Crew

Total

Sustainability Report 2013

35.52%

G4-LA5

Occupational Safety and Health TASA has an Occupational Safety and Health Management System as stipulated by the national legislation. This system is implemented in each one of the branches and vessels, which includes the Annual Occupational Safety and Health Plan, the hazards and risks matrix, the Occupational Safety and Health Regulation, the Risk Map and the permanent training of our personnel. All of TASA’s workers are represented in the Occupational Safety and Health Committees, located in each one of the branches and which intend to improve and secure the safety and health culture in the workplace.

G4-LA8

Within the unions, the health and safety aspects stipulated in collective agreements are fully respected, as detailed below. • Compliance with clause ten of the Collective agreement by Area of Activity signed between the SUPNEP and AANEP: in which the work and health conditions and the safety norms of equipment and of human life at sea are agreed. • Compliance with the Collective Agree-

ments signed with Union Organizations of Plants and/or Units, regarding Occupational Safety and Health conditions such as uniforms and safety protection equipment. These practices are also regulated by our policy. • Compliance with the Occupational Safety and Health Regulation of Plants and/or Units in the following aspects: --Use of personal protection equipment. --Formation and meetings of the Occupational Safety and Health Committees. --Participation of workers’ representatives in the inspections, audits and investigations of accidents related to safety and health. --Training and drills. --Internal report and investigation procedures and corrective actions of deviations, accidents and labor related illnesses. --Periodic inspections of the behavior of the workers and in the work environments. --Internal audits of the general occupational health and safety management.

G4-LA7

Our activities are controlled through the implementation of the IPERC (Identification of hazards, evaluation of risks and determination of controls), the AST (Safe Analysis of the Workplace) and the PTS (Permits of Safe Work) for the purpose of establishing preventive controls for all work that could cause an injury to the worker, as well as by the permanent training and sensitizations of the personnel. In all the TASA units there are 5 minute talks prior to the performance of the works and, according to the activities carried out by the employees, training programs are executed, in which 40,284 man hours have been invested. Each year TASA carries out the monitoring of occupational hygiene such as

Sustainability Report 2013

lighting levels, disergonomic risk, noise dosimetry, gas exposure, among others, for the purpose of controlling any agent that could cause an illness to the personnel, having identified as a possible occupational illness the hearing loss induced by noise in the positions such as the Powerhouse Operator and Operator of mills and cooler, and with less probability in the positions of Operator of hopper, kitchen, presses, environmental separator, dryers, cauldrons, sacking, oil plant, evaporating plant and water treatment. During 2013 there were work accidents, which have been reported and analyzed to take the necessary corrective and preventive measures. The incidence rates by type of accident, as well as the accident index are shown below:

Incidence by type of accident Type of accident

% of incidence

Hit by

30.00%

Fall at the same level

21.67%

Trapped by

16.67%

Hit against

10.00%

Contact with substance

6.67%

Ergonomic aspects

3.33%

Fall to a different level

3.33%

Others

8.35%

Accident Rate Index 2012 â&#x20AC;&#x201C; 2013 TASA

G4-LA6

45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Jan.

Feb.

Mar.

Apr.

May

5.71

3.13

5.62

6.54

Accumulated AI 2013 12.63 10.46

9.26

8.40

Accumulated AI 2012

Jun.

Sep.

Oct.

Nov.

Dic.

8.67

10.34 12.33 11.54 10.48

9.95

9.46

9.04

7.56

39.70 35.41 32.60 30.60 28.46 24.55 25.22

As can be observed in the above graphic, the accident index doubled with effect from June, the month in which we had the occurrence of a fatal accident in our plant of Malabrigo. Its causes were

Jul.

Aug.

rigorously analyzed, so that we could apply the corrective measures for the benefit of the health and safety of our employees.

Human Rights Human Rights in TASA In TASA we fully respect the Human Rights and have been working to incorporate them in our supply chain. The main commitment of our company, in this sense, is the compliance of the 10 Principles of the Global Compact of the United Nations to which we have been subscribed since 2009.

Sustainability Report 2013

The Ten Principles of the Global Compact Principle 1: Companies must support and compliance with the ten principles of the respect the protection of the universally Global Compact of the United Nations. recognized fundamental human rights, Principle 3: Companies must uphold the within their area of influence. freedom of association and the effective No incidents related to the violation of recognition of the right to collective human rights were reported within our bargaining. business units, or within the communities in which we operate. In order to promote the protection of human rights we carried out in 2013 workshops regarding themes related to Human Rights that involve a total of more than 600 hours.

We have maintained cordial relations and constant communications with each of our union organizations. All of the collective negotiations have been closed in direct dealings.

Principle 2: Companies must make sure Principle 4: Companies must support that their companies are not complicit the elimination of all forms of forced or in human rights abuses. compulsory labor. Through the Audit Management, we oversee the strict compliance of the Code of Conduct and Ethics. This Code is of obligatory compliance for all our employees and a guide for action for our suppliers, ship owners, clients and third parties with whom we do business. In our homologation processes of suppliers we include questions related to the

In strict compliance with what is established in articles 23 and 24 of the Political Constitution and ILO Agreements 29 (art. 1) and 105 (art. 1), none of our employees is obliged to carry out work without his free consent and without adequate remuneration. Furthermore, a clause is established in the contracts with our suppliers whereby they declare that

they will not use or sponsor the use of forced labor.

Principle 5: Companies must support the eradication of child labor. TASA signed, along with 16 other large companies from various sectors, the Business Commitment for the Prevention and Eradication of Child Labor, an initiative that includes the participation of the Network of the Global Compact in Peru. Through this agreement, we are committed to promoting action plans with initiatives directed at the stakeholders to contribute to preventing and eradicating child labor. Furthermore, we have a hiring policy that regulates the exclusive hiring of adults. In the case of our productive chain, our suppliers adhere to the clauses in their contracts that prohibit child labor, directly or indirectly. In TASA we do not have underage workers in compliance with the provisions of Law Decree No. 26102.

Principle 6: Companies must support the elimination of discriminatory practices in respect of employment and occupation. In our Code of Ethics and Conduct we make explicit our commitment to respect towards cultural plurality and diversity, as well as the promotion of an inclusive environment free from discrimination, intimidation and harassment.

carries out lab tests to optimize our processes and develop new environmentally friendly technologies. TASA complies with the MPL (Maximum Permissible Limits) for oils and fats and total suspended solids, according to the regulations of Supreme Decree 10-2008-PRODUCE that have been in force since 2013.

Principle 8: Companies must undertake initiatives that promote greater environmental responsibility. We have incorporated the care of the environment within our mission, vision and values. In that way, and through training and workshops in good environmental practices, we involve our employees and a sector of our communities in the development of initiatives to contribute to the preservation of the environment.

Principle 9: Companies must encourage the development and dissemination of technologies that respect the environment. We test and apply clean technologies for production in all the business units, which are the result of research oriented towards mitigating the environmental impact. An example of this is the gradual change from our FAQ (direct heat drying) drying process to the Steam Dried (indirect steam dried) system in our plants.

Principle 10: Companies must work against corruption in all its forms, including extortion and bribery.

Principle 7: Companies must maintain a preventive approach that favors the Our Code of Conduct and Ethics environment. establishes a series of norms to fight Our Management of Operations, Quality and Investigation and Environmental Research and Development constantly

Sustainability Report 2013

against corruption in all its forms. We train our personnel every year and monitor their compliance through the Audit Management.

Survey of Sustainability Report 2013

Sustainability Report 2013

SUSTAINABILITY REPORT 2013 We very much appreciate your opinion which will help us to prepare better publications. If you would like to give us your opinion, you can do so through the following modalities: Email: wrojas@tasa.com.pe Main office: Calle Las Begonias 441 Of. 352, San Isidro, Lima / Telephone: (511) 611 1400 Fax: (511) 611 1401 1) Which stakeholder group do you belong to or feel identified with? Clients

Community

Suppliers

Employees

State

Financial creditors

Shareholders

Ship owners

2) How would you qualify our Sustainability Report 2013, with regard to: Excellent

Good

Regular

Bad

Presentation Easy reading Clarity of the information Clarity of the graphics Credibility 3) Please, describe the section that you liked the most and tell us why.

4) Please, indicate what information you did not find or found little of, and what you would like to know in depth.

5) Would you like to continue to receive similar reports from TASA?

Yes

6) Additional comments:

Thank you very much for your participation.

GRI Index GRI

ISO 26000

GLOBAL PACT

PAGE

EXTERNAL VERIFICATION

4,5

32-36

GENERAL STANDARD DISCLOSURES Strategy and analysis General standard disclosures G4-1 G4-2

Provide a statement from the most senior decision-maker of the organization (such as CEO, Chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy

4.7, 6.2,

Provide a description of key impacts, risks and opportunities

Organizational Profile General standard disclosures Cover

G4-3

Report the name of the organization

G4-4

Report the primary brands, products and services

G4-5

Report the location of organization’s headquarters

G4-6

Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report

G4-7

Report the nature of ownership and legal form

G4-8

Report the markets served (including geographic breakdown, sectors served and types of customers and beneficiaries)

20,21

G4-9

Report the scale of the organization

12, 54, 75

G4-10

a. Report the total number of employees by employment contract and gender b. Report the total number of permanent employees by employment type and gender c. Report the total workforce by employees and supervised workers and gender d. Report the total workforce by region and gender e. Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries)

75, 76

26, 27

There have been no significant changes in the size, structure and ownership of TASA

80-82

G4-11 G4-12

Report the percentage of total employees covered by collective bargaining agreements Describe the organization’s supply chain Report any significant changes during the reporting period

G4-13

regarding the organization’s size, structure, ownership or its supply chain.

G4-14

Report whether and how the precautionary approach or principle is addressed by the organization

6.3.10, 6.4.1, 6.4.2, 6.4.3, 6.4.4, 6.4.5, 6.8.5, 7.8

Principle 6

Principle 3

List externally developed economic, environmental or social

G4-15

charters, principles, or other initiatives to which the organization subscribes or which it endorses List memberships of associations (such as industry associations)

G4-16

and national or international advocacy organizations to which the organization belongs

36 For further information see Sustainability Report 2010, pages 22 and 23.

GRI

ISO 26000

GLOBAL PACT

PAGE

EXTERNAL VERIFICATION

TASA

40-42

Organizational profile General standard disclosures

G4-17

a. List all entities included in the organization’s consolidated financial statements or equivalent documents b. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report

G4-18

a. Explain the process for defining the report content and the Aspect Boundaries b. Explain how the Organization has implemented the Reporting Principles for Defining Report Content

G4-19

List all the material Aspects identified in the process for defining report content

G4-20

For each material Aspect, report the Aspect Boundary within the Organization

G4-21

For each material Aspect, report the Aspect Boundary outside the Organization

40-42

G4-22

Report the effect of any re-statements of information provided in previous reports and the reasons for such restatements

There are no significant re-statements between our last report and this one, since we conserve the same measurement units and management perspectives

Previously we reported all the indicators in accordance with the guidelines of version G3.1 of the GRI; while on this occasion we have carried out a materiality process which has identified material aspects and indicators for TASA’s 2014 Sustainability Report

G4-23

5.2, 7.3.2, 7.3.3, 7.3.4

Report significant changes from previous reporting periods in the Scope and Aspect Boundaries

Stakeholder Engagement General standard disclosures G4-24

Provide a list of stakeholder groups engaged by the organization

47, 48

G4-25

Report the basis for identification and selection of stakeholders with whom to engage

47, 48

G4-26

Report the Organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process

49, 50

50, 51

G4-27

Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns

Sustainability Report 2013

5.3

GRI

ISO 26000

GLOBAL PACT

PAGE

EXTERNAL VERIFICATION

Report profile General standard disclosures G4-28

Reporting period (such as fiscal or calendar year) for information provided

G4-29

Date of most recent previous report (if any)

G4-30

Reporting cycle (such as annual, biennial)

G4-31

Provide the contact point for questions regarding the report or its contents

G4-32

a. Report the “in accordance” option the organization has adopted b. Report the GRI Content Index for the chosen option (see tables below) c. Report the reference to the External Assurance Report, if the report has been externally assured. GRI recommends the use of external assurance, but it is not a requirement to be “in accordance” with the Guide

G4-33

a. Report the organization’s policy and current practice with regard to seeking external assurance for the report b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided c. Report the relationship between the organization and the assurance providers d. Report whether the highest governance body or senior executives are involved in seeking external assurance for the organization’s sustainability report

Governance General standard disclosures

G4-34

Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decisionmaking on economic, environmental and social impacts

13,14

G4-35

Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees

G4-36

Report whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body

GRI

ISO 26000

GLOBAL PACT

PAGE

EXTERNAL VERIFICATION

Report Profile General standard disclosures

G4-37

Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body

G4-38

Report the composition of the highest governance body and its committees

G4-39

Report whether the Chair of the highest governance body is also an executive officer (and if so, his or her function within the organization’s management and the reasons for this arrangement

G4-40

Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members; including:

G4-41

Report processes for the highest governance body to ensure possible conflicts of interest are avoided and managed. Report whether conflicts of interest are disclosed to stakeholders, Including, as a minimum: Cross-board membership of different boards of directors; cross-shareholding with suppliers and other stakeholders; existence of controlling shareholder; related party disclosures

G4-42

Report the highest governance body’s and senior executives’ roles in the development, approval and updating of the organization’s purpose, value or mission statements, strategies, policies and goals related to economic, environmental and social impacts

G4-43

Report the measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental and social matters

G4-44

a. Report the processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics. Report whether such evaluation is independent or not, and its frequency. Report whether such evaluation is a self-assessment b. Report actions taken in response to evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics, including, as a minimum, changes in membership and organizational practices

Sustainability Report 2013

6.2, 7.4.3, 7.7.5

Principle 10

GRI

ISO 26000

GLOBAL PACT

PAGE

EXTERNAL VERIFICATION

G4-45

a. Report the highest governance body’s role in the identification and management of economic, environmental and social impacts, risks and opportunities. Include the highest governance body’s role in the implementation of due diligence processes b. Report whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, environmental and social impacts, risks and opportunities

G4-46

Report the highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics

G4-47

Report the frequency of the highest governance body’s review of economic, environmental and social impacts, risks and opportunities

The Audit, Risks and Finance Committees; Strategy and Performance Committee, and Committee of Human Talent Management which also review and approve the sustainability report

Principles 1 and 2

All

Principle 10

G4-48

Report the highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material Aspects are covered

G4-49

Report the process for communicating critical concerns to the highest governance body.

G4-50

Report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them.

G4-51

a. Report the remuneration policies for the highest governance body and senior executives b. Report how performance criteria in the remuneration policy relate to the highest governance body’s and senior executives’ economic, environmental and social objectives

G4-52

Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Report any other relationships which the remuneration consultants have with the organization

G4-53

Report how stakeholders’ views are sought and taken into account regarding remuneration, including the results of the votes on remuneration policies and proposals, if applicable

Through our measurements of the labor climate, we collect the perception of our employees with regard to this point. In the case of our other stakeholders, we collect their perceptions through our standard communications channels (see page 50)

G4-54

Report the ratio of the annual total compensation for the organization’s highest paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest paid individual) of the same country

4.5

“6.2, 7.4.3, 7.7.5”

GRI

G4-55

Report the ratio of percentage increase in annual total compensation for the organization’s highest paid individual in each country of significant operations to the median percentage increase in annual total remuneration for all employees (excluding the highest-paid individual) in the same country

ISO 26000

6.2, 7.4.3, 7.7.5

GLOBAL PACT

PAGE

3.86

EXTERNAL VERIFICATION

ETHICS AND INTEGRITY

G4-56

Describe the organization’s values, principles, standards and norms of behavior, such as codes of conduct and codes of ethics

G4-57

Report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines

G4-58

Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hot lines

SPECIFIC STANDARD DISCLOSURES Economic aspects Economic performance General standard disclosures

Generic DMA

6, 7.3.1, 7.4.3, 7.7.3, 7.7.5

Specific DMA

G4-EC1

Report the direct economic value generated and distributed

6.8.1, 6.8.2, 6.8.3, 6.8.7, 6.8.9

G4-EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change

6.5.5

G4-EC3

Coverage of the organization’s defined benefit plan obligations

6.8.7

In accordance with our principles and internal policies, TASA does not receive financial help from governments

G4-EC4

Financial assistance received from government

Sustainability Report 2013

GRI

ISO 26000

GLOBAL PACT

PAGE

EXTERNAL VERIFICATION

Indirect economic impacts General standard disclosures

G4-EC7

G4-EC8

Generic DMA

Specific DMA

Development and impact of infrastructure investments and services supported Significant indirect economic impacts including the extent of impacts

58, 68

Environmental aspects Biodiversity General standard disclosures Principles 7, 8 and 9 Principles 7, 8 and 9

Generic DMA Specific DMA

No No

G4-EN11

Operational sites owned, leased or managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

Principles 7, 8 and 9

60, 61

G4-EN12

Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

Principles 7, 8 and 9

60, 61

G4-EN13

Habitats protected or restored

Principles 7, 8 and 9

60, 61

G4-EN14

Total number of IUCN Red List species of the UICN and national conservation list species with habitats in areas affected by operations, by level of extinction risk

Principles 7, 8 and 9

60, 61

Emissions General standard disclosures

Generic DMA

6, 7.3.1, 7.4.3, 7.7.3, 7.7.5

Specific DMA G4-EN14

Direct greenhouse gas emissions (Scope 1)

G4-EN16

Energy indirect greenhouse gas emissions (Scope 2)

G4-EN17

Other indirect greenhouse gas emissions (Scope 3)

G4-EN18

Greenhouse gas emissions intensity

6.5.5 6.5.3

Principles 7, 8 and 9

Principles 7, 8 and 9 Principles 7, 8 and 9 Principles 7, 8 and 9

No 62, 63

62, 63

Principles 7, 8 and 9

62, 63

Principles 7, 8 and 9

62, 63

GRI G4-EN20 G4-EN21

ISO 26000

Emissions of ozone-depleting substances NOX, SOX and other significant air emissions

6.5.5 6.5.3

GLOBAL PACT

PAGE

EXTERNAL VERIFICATION

Principles 7, 8 and 9

62, 63

Principles 7, 8 and 9

62, 63

Effluents and Waste General standard disclosures

Specific DMA

Principles 7, 8 and 9 Principles 7, 8 and 9

G4-EN22

Total water discharge by quality and destination

Principles 7, 8 and 9

G4-EN23

Total weight of waste by type and disposal method

Principles 7, 8 and 9

G4-EN24

Total number and volume of significant spills

Principles 7, 8 and 9

G4-EN25

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention

Principles 7, 8 and 9

62, 63

G4-EN26

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organizationâ&#x20AC;&#x2122;s discharges of water and runoff

Principles 7, 8 and 9

Generic DMA

No No

Compliance General standard disclosures Principles 7, 8 and 9 Principles 7, 8 and 9

Generic DMA Specific DMA

G4-EN29

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

Principles 7, 8 and 9

No No

Social aspects: society Local communities General standard disclosures

Generic DMA

6, 7.3.1, 7.4.3, 7.7.3, 7.7.5

Specific DMA

G4-SO1

Percentage of operations with implemented local community engagement, impact assessments, and development programs

G4-SO2

Operations with significant actual and potential negative impacts on local communities

Sustainability Report 2013

6, 7.3.1, 7.4.3, 7.7.3, 7.7.5

Principles 1 and 2

GRI

ISO 26000

GLOBAL PACT

PAGE

EXTERNAL VERIFICATION

Anti-corruption General standard disclosures

Generic DMA

6, 7.3.1, 7.4.3, 7.7.3, 7.7.5

Specific DMA

Principle 10

G4-SO3

Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

6.6.1, 6.6.2, 6.6.3

Principle 10

G4-SO4

Communication and training on anti-corruption policies and procedures

6.6.1, 6.6.2, 6.6.3, 6.6.6

Principle 10

G4-SO5

Confirmed incidents of corruption and action taken

Principle 10

Supplier assessment for impacts on society General standard disclosures

Specific DMA

Principles 7, 8 and 9 Principles 7, 8 and 9

G4-SO9

Percentage of new suppliers that were screened using criteria for impacts on society

Principles 7, 8 and 9

G4-SO10

Significant actual and potential negative impacts on society in the supply chain and actions taken

Principles 7, 8 and 9

Generic DMA

No No

SOCIAL ASPECTS: LABOR PRACTICES OCCUPATIONAL HEALTH AND SAFETY General standard disclosures

Generic DMA

6, 7.3.1, 7.4.3, 7.7.3, 7.7.5

Principle 6

Specific DMA

Principle 6

G4-LA5

Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs

Principle 6

G4-LA6

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of workrelated fatalities by region and by gender

Principle 6

G4-LA7

Workers with high incidence or high risk of diseases related to their profession

Principle 6

G4-LA8

Health and safety topics covered in formal agreements with trade unions

Principle 6

6.5.5 6.5.3

GRI

ISO 26000

GLOBAL PACT

PAGE

EXTERNAL VERIFICATION

Supplier assessment for labor practices General standard disclosures

Generic DMA

Specific DMA

G4-LA14

Percentage of new suppliers that were screened using labor practices criteria

G4-LA15

Significant actual and potential negative impacts for labor practices in the supply chain and actions taken

Sustainability Report 2013

This Sustainability Report, as well as the previous editions, is available in our website: www.tasa.com.pe in its English and Spanish versions. Any enquiry related to the information included in this report may be addressed to: 2.4 Wendy Rojas Lรณpez Assistant Manager of Social Responsibility Las Begonias 441, Of. 352, San Isidro, Lima Telf. (511) 611-1400, anexo 1735 wrojas@tasa.com.pe

Sustainability Report 2013

This is our Communication on Progress in implementing the principles of the United Nations Global Compact and supporting broader UN Goals. COMMUNICATION ON PROGRESS

We welcome feedback on its contents.

Las Begonias 441 OF.352 San Isidro - Lima 27, PerĂş Telef. (511) 611 1400 Fax (511) 611 1401 www.tasa.com.pe